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Communication  f 
Conf  Pam  #348 


Mouse  of  representatives,  May  23,  IS64.— Referred 
to  the  Committee  of  Ways  and  Means  and  Joint  Committee  on  Im- 
pressments and  ordered  to  be  printed. 

[By  the  Chair.] 


cojS/diJS/ixjisrio^Tioisr 


FROM    THK 


SECRETARY  OF  THE  TREASURY, 

Rcconimetidhig  certain  chanp;es  in  the  hnpressmcnt 

Laws. 


Treasurv   DKPAlliMi^Nr,  C.  S.   A.,  ^ 
N    Richrtwnd,  May  SOth,  1864.      \ 

Hon.  Thomas  S.   Bocock, 

Speaker  of  the  House  of  Representatives  : 

Sir  :  Since  the  date  of  my  report  of  2d  instant,  nearly  three  weeks 
have  elapsed.  During  that  period  it  was  intended  to  make  sale  at 
public  auction  at  the  capital,  of  part  of  the  six  per  cent,  untaxable 
bonds,  with  a  view  to  establish  the  rate  j^  which  sales  could  be  made 
at  every  commercial  point  in  the  Confederacy.  Military  necessities 
have  prevented  this  sale  and  still  require  its  postponement.  The  aid 
which  it  was  expected  the  Treasury  would  derive  from  that  source,  is, 
therefore,  delayed  for  at  least  a  month  and  for  the  expenditures  of 
that  period,  treasury  notes  or  some  other  substitute  becomes  neces- 
sary. The  means  provided  by  Congress  for  supplying  the  wants  of 
the  Government  at  this  time  consist :  First,  of  the  limited  new  issue 
of  treasury  notes  ;  second,  of  the  sales  of  the  said  six  per  cent,  bonds," 
and  third,  of  certificates  of  indebtedness.  In  my  report  of  the  2d 
instant,  1  have  shown  that  th^  whole  amount  derived  from  taxes 
during  the  present  year  will  be  applied  to  the  reduction  of  the  public 
debt,  and  will  afford  no  aid  in  paying  the  current  expenditures  of  the 
Government.  This  I  regard  as  an  imperfpct  feature  in  the  tax  bill 
and  have  recommended  that  it  be  remedied  by  additional  taxes.  The 
collection  of  these  taxes,  however,  cannot  take  place  in  time  to  meet 


the  emergency  and  resort  must  be  had  to  one  of  the  other  resources. 
In  the  same  report  I  have  set  forth  the  reasons  why  an  increased  issue 
of  treasury  notes  would  be  injudicious,  and  if  these  reasons  are 
deemed  adequate  to  justify  the  conclusion,  it  follows  that  resort  must 
be  had  to  the  third  means  of  supply,  namely  :  certificates  of  indebted- 
ness. 

The  great  leading  wants  of  the  Government  to  be  supplied  at  home 
are  clothing,  subsistence  and  transportation.  If  measures  can  be 
adopted  which  will  enable  these  wants  to  be  supplied  wholly  or  in 
part  through  certificates  of  indebtednes,  great  relief  will  at  once  be 
obtained.  The  railroad  companies  have  generally  exhibited  so  much 
public  spirit  and  patriotism  that  it  is  highly  probable  they  will 
readily  accept  certificates  in  part  payment  of  transportation. 

The  other  great  wants  are  supplied  by  the  manufacturers,  farmers, 
and  planters,  who  manufacture  the  clothing  and  produce  the  subsist- 
ence stores  of  the  country.  If  these  parties  could  be  induced  to  ac- 
cept certificates  for. such  articles  as  are  the  subjects  of  purchase  or 
impressment,  the  scheme  would  be  complete.  It  seems  to  me  that  by 
resorting  to  a  specie  basis  for  all  purchases  and  impressments,  they 
could  be  made  more  acceptable  both  to  the  Government  and  to  the 
owner.  If  all  articles,  when  impressed,  were  valued  at  the  prices  of 
1860,  (when  the  currency  was  at  a  specie  standard,)  or  at  their 
present  value  in  coin,  and  certificates  were  issued  for  such  value 
payable  tAvo  years  after  peace  in  specie,  the  interest,  in  the  meantime, 
to  be  paid  semi-annually  in  coin;  or  its  market  value  in  Confederate 
notes,  a  substantial  security  of  the  highest  value  would  be  obtained. 
The  party  giving  up  his  commodities  would  be  better  satisfied  with  the 
price  and  mode  of  payment.  During  the  continuance  of  the  war  he 
would  receive  the  same  I'ate  of  interest  as  though  his  property  had 
been  valued  in  Confederate  notes  ;  and  after  the  war  he  would  receive 
its  full  value  in  coin.  The  Government  would  be  better  satisfied 
because,  whilst  it  paidcio  higher  interest  during  the  war  than  it  would 
do  under  the  existing  law,  it  would,  after  the  war,  save  the  loss  to 
which  the  present  exaggerated  prices  have  exposed  it.  As  no  material 
abatement  in  prices  has  occurred  since  the  meeting  of  Congress,  it  is 
obvious  that  the  supplies  voted  ,by  the  last  Congress  must  be  largely 
increased,  unless  some  such  measure  of  relief  should  be  adopted  at 
the  present  session.  I  respectfully  .recommend,  therefore,  that 
the  impressment  law  be  amended  in  conformity  with  the  above  sug- 
gestion ;  and  that  it  be  extended  to  all  supplies  which  may  be  neces- 
sary for  the  suport  of  the  army  and  navy.  I  also  reconimend  that  a 
reasonable  proportion  of  the  railroad  transportation  based  upon  the 
charges  of  1860  shall  be  paid  in  the  same' way.  As  the  cash  ex- 
penses of  railroads  are  very  large  and  require  supplies  of  money  for 
daily  use,  it  is  probable  that  one-third  of  such  charges  would  be  as 
much  as  they  could  afford  to  take. 

To  enable  the  treasury  to  meet  the  payment  of  the  interest  on 
these  ccrtifiates,  it  would  be  advisable  to  furnish  it  with  the  means  of 
procuring  .coin.  A  double  advantage  would  thus  be  gained.  The 
Government  would  be  enabled  to  pay  its  interest  at  a  lower  rate  and 


the  paying  out  of  so  much  coirv would  reduce  the  difference  between 
the  market  rate  of  coin  and  Confederate  'Securities,  I  would,  there- 
fore, respectfully  rccj^ommend  that  an  additional  appropriation  be 
made  to  enable  the  Treasury  to  purchase  and  ship  as  much  cotton  as 
may  be  made  available  for  this  purpose.  Ten  millions  of  dollars 
would  probably  be  sufficient  at  the  present  session. 
Respectfully  submitted, 

C.  G.  MEMMINGEH, 

Secretary  of  the  Treasury. 


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